Regulatory Analysis
[April 29, 2019] The Colorado Department of Revenue provided a grace period for in-state and out-of-state retailers to comply with new destination sourcing and economic nexus rules. This grace period ends on May 31, 2019. Beginning June 1, 2019, in-state retailers will be required to collect and remit sales taxes based on the jurisdiction’s tax […]
[May 8, 2019] Effective July 1, 2019, marketplace facilitators are required to collect and remit Indiana sales tax as retail merchants when they facilitate retail transactions for sellers. The recently-enacted law provides that a marketplace is considered a retail merchant if it does any of the following on behalf of the seller: (1) collects the sales […]
[May 8, 2019] The Georgia governor has signed legislation to lower the threshold at which remote sellers must collect and remit sales and use tax. Effective January 1, 2020, remote sellers who obtain gross revenue over $100,000 in the previous or current calendar year, or conducted 200 or more separate retail sales in the previous […]
[May 3, 2019] Last month, New York state passed its 2019 budget which contained some major changes for sales taxes and fees in the state. Most prominent of these changes was the imposition of sales tax liability on online marketplaces beginning June 1, 2019. While the Department of Taxation and Finance had issued an advisory opinion […]
[April 30, 2019] South Carolina Governor Henry McMaster signed S.B. 214 into law clarifying the definition of marketplace facilitators and reinforcing the requirements to collect and remit sales tax in the state. Under this new law, a marketplace facilitator is defined as “any person engaged in the business of facilitating a retail sale of tangible personal […]
[April 26, 2019] The Colorado Department of Revenue has adopted permanent regulations to require out-of-state retailers that are doing business in Colorado and have substantial nexus with the state to collect Colorado sales or use tax. Out-of-state retailers are considered to have a substantial nexus with Colorado for sales tax purposes if the retailer’s gross […]
On April 25, 2019, the governor of California approved Assembly Bill No. 147. The bill requires remote sellers to collect and remit California sales and use tax if the seller had over $500,000 in sales of tangible personal property for delivery into California in the preceding or current calendar year. The California Department of Tax […]
On April 10, 2019, Governor Hutchinson of Arkansas, officially signed Act 822 into law, which among other changes enacted a new economic nexus threshold. Remote sellers and marketplace facilitators will be required to collect and remit Arkansas sales and use taxes if in a previous or current calendar year they make 200 transactions or $100,000 in […]
On April 4, 2019, Hawaii Governor David Ige signed SB 396/Act 2 into law. The new law, effective January 1, 2020, establishes marketplace facilitators as the sellers of tangible personal property, intangible property, or services. This is not unusual and is demonstrative of a clear national trend. However, Hawaii has added a unique twist – marketplace sellers are deemed […]
Top Texas politicians are proposing a statewide sales tax rate increase of 1% (from 6.25% to 7.25%) to allow for lower property taxes across the state. The increase would have to be approved both by the legislature and by Texas voters later this year before it could go into effect. If the legislature and Texans approve […]
North Dakota now joins several other states in enacting marketplace legislation. Effective October 1, 2019, marketplace facilitators who have either facilitated more than $100,000 in sales or 200 or more separate transactions into North Dakota in the current or prior calendar year will be required to collect North Dakota sales and use tax. Marketplace facilitators […]
Beginning July 1, 2019, Virginia will require remote sellers and marketplace facilitators to collect and remit sales and use tax if they have more than $100,000 in annual gross revenue from sales or at least 200 sales transactions in the state. Marketplace facilitators will also be required to collect and remit sales tax on behalf […]
North Carolina Governor Roy Cooper signed Senate Bill 56 into law which codifies the North Carolina Department of Revenue directive published in response to the South Dakota v. Wayfair U.S. Supreme Court Decision. The legislation requires remote sellers to collect and remit sales and use tax when the seller, for either the current or previous year, has […]
On March 21, 2019, Governor Ricketts of Nebraska signed LB284 into law, enacting requirements for marketplace sellers to collect and remit sales and use tax in Nebraska. Under this legislation, sellers will be considered “doing business in Nebraska” when they have 200 or more transactions or sell more than $100,000 in products into Nebraska via the internet […]
Utah voters approved Proposition 3 on November 6, 2018. Proposition 3 includes a state-level sales and use tax rate change from 4.70% to 4.85% effective April 1, 2019. Please refer to Utah State Tax Commission Tax Bulletin 01-19 for more details and a listing local rate changes to take effect April 1, 2019.
The State of Washington recently passed SB 5581 which simplifies economic nexus rules for remote sellers and marketplace facilitators which became effective immediately upon signing by the governor on March 15, 2019. The legislation eliminates the 200 sale threshold for economic nexus and codifies the $100,000 in annual sales threshold based on cumulative gross receipts on retail sales (previously […]
The New York State Department of Taxation and Finance has issued TSB-A-19(1)S which found that an online marketplace which sold software on behalf of third-party sellers could be viewed as a co-vendor liable for the collection and remittance of sales tax on the sales of prewritten software. The opinion states that if the marketplace collects and […]